Chapter 8: Efficient Anarchy

Questions for Discussion:

1. What are the costs of government?
2. What are the benefits of government?
3. When is anarchy efficient?
4. Discuss the difference between small anarchic systems and large anarchic systems.

Chapter 9: Better off Stateless

Questions for Discussion:

1. Discuss the Somalia when there was the government
2. Since the collapse of Somalia into anarchy, what measures Peter Leeson uses to make his case that in the case of Somalia, anarchy is a more efficient system than the system it was into?
3. Do think Somalia's anarchy is sustainable? Explain why or why not?

Chapter 10: An Argument for Anarchy in LDC's

Questions for Discussion:

1. What is Demsetz's Nirvana Fallacy?
2. How does that Nirvana Fallacy apply to arguments in favor of transplanting Western-style government in place of anarchy in Somalia, for example?
3. What's the proper analytical comparison we should do when deciding what kind of institutional arrangement (government vs. anarchy) should prevail in organizing the society in a particular country or geographical area?
4. What are the necessary properties that a government must meet to the standard of high-quality government?
5. Explain second-best theory.